Ecuador Rises Car Taxes

Ecuador would increase 5 percentage points in the tariff  comming from the most demand imported vehicles . This is an attempt to control the commercial deficit affected by the purchase of foreign fuel and lubricant.

The measure would take effect in coming days, and points to all the imported cars up to 2000 cc, including those that use diesel. Buses and trucks are exempted depending on if they are or not considered under the guidelines of the World Trade Organization (WTO).

All these cars would pay a 40 percent more on their tariff from the current 35 percent.

Cars with these characteristics are the most demanded in the Ecuadorian market, according to the authorities.

The Government also seeks, in a long term, to promote domestic production of vehicles parts and they also want to encourage assembly plants in Ecuador.

It is estimated that the price of cars will rise from $ 300 to $ 500 with the new tariff rate.